Ethereum Faces Crash to $600 as Crypto Bear Persists

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Ethereum Faces Crash to 0 as Crypto Bear Persists
Changelly


key takeaways

Ethereum has retraced more than 20% over the past four days. Meanwhile, nearly 193,000 ETH has been sent to cryptocurrency exchanges. Further selling pressure could trigger a correction towards $600.

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Ethereum appears to be at risk of a sharp correction as a volatile June for cryptocurrencies draws to a close. Market participants rushed to exchanges to close their positions, and Ethereum had little support.

Ethereum faces lower lows

Ethereum appears to be primed for a big price swing as selling pressure accelerates.

The second-ranked cryptocurrency has lost more than 20 percent in price over the past four days. It traded at a local high of $1,280 on June 26 before falling to a low of $1,015. Notably, Ethereum dipped below the key $1,000 level on June 18, with losses likely to extend further as downward pressure appears to be building.

Phemex

On-chain data from Glassnode shows a significant increase in the amount of Ethereum held in wallets of known cryptocurrency exchanges. Nearly 193,000 ETH worth about $200 million has flowed into the exchange since June 26. The surge in balances held on exchanges coincided with the recent price drop, suggesting a sell-off.

Source: Glassnode

Furthermore, transaction history shows that Ethereum lacks the demand needed to prevent further losses. The next major support level for Ethereum is $600, where 12.8 million addresses hold 9.55 million ETH. This area of ​​interest is critical as market participants may sell their holdings to prevent their investments from “losing money”.

Ethereum transaction history
Source: IntoTheBlock

The most critical resistance level for Ethereum is currently at $1,120 after 468,000 addresses bought over 7 million ETH. A daily candlestick close above this mark could invalidate the bearish outlook, potentially leading to a surge to $1,300 or even $1,500.

Disclosure: At the time of writing, the author of this feature owns BTC and ETH.

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